Sponsored

Search This Blog

Brian Luke Community Blogger, WGRZ-TV

Wednesday, January 11, 2012

Four Indicted in Scheme to Allegedly Fraudulently Obtain Nearly $1.4 Million from Baltimore Housing Authority Account



Defendants Allegedly Transferred Funds Out of Housing Authority’s Bank Account

U.S. Attorney’s OfficeJanuary 09, 2012
  • District of Maryland
BALTIMORE—A second superseding indictment, which was returned by the grand jury on December 21, 2011 and was unsealed today, charges four defendants in a conspiracy to fraudulently obtain almost $1.4 million from a Baltimore Housing Authority bank account. Charged in the second superseding indictment are:
  • Daren Kareem Gadsden, aka “D,” age 35, of Upper Marlboro, Maryland;
  • Tyeast Brown, aka “Peaches,” age 41, of Suitland, Maryland;
  • William Alvin Darden, age 44, of Washington, D.C; and
  • Keith Eugene Daughtry, age 50, of Washington, D.C.
All of the defendants have been arrested. Gadsden and Darden are detained pending trial. Brown and Daughtry were released under the supervision of U.S. Pretrial Services.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.
“The indictment alleges that the defendants stole from the Baltimore Housing Authority by transferring money directly out of the Authority’s bank account,” said U.S. Attorney Rod J. Rosenstein. “The $1,399,700 stolen from the Baltimore Housing Authority was supposed to be used to provide housing, not to line the pockets of criminals.”
According to the four-count second superseding indictment, in 2009, Gadsden owned a property in Baltimore that was rented to a low-income individual, whose rental payments were paid by the Baltimore Housing Authority, from its account directly to Gadsden’s bank account. In late 2009 and 2010, Gadsden made a series of inquiries to another bank where he had an account about how to use his computer to make electronic transfers to and from his account at that bank. In early 2010, the Housing Authority lost a few thousand dollars when a series of unauthorized electronic transfers debited funds out of the Housing Authority’s account and into Gadsden’s bank account. After being confronted by Housing Authority officials, Gadsden denied any wrongdoing, but paid the Housing Authority $1,400 to cover some of its losses.
From early 2010 until at least September 17, 2010, the indictment alleges that the defendants conspired to execute a larger scheme to defraud the Housing Authority. Specifically, Gadsden contacted Brown to plan the fraud. Brown, in turn, contacted Darden and Daughtry, securing from Daughtry his Social Security card and birth certificate, which she provided to Darden. On May 19, 2010, Darden obtained a Maryland driver’s license with his photograph, but in Daughtry’s name, using Daughtry’s Social Security card and birth certificate as proof of identity. Darden then used the fraudulent license to open a bank account in the name of Keith Daughtry Contracting LLC. Gadsden had registered the entity with the state of Maryland, only a few days before, under a different, misspelled name. Darden also provided a mailing address for the company that was actually a mailbox rented by the conspirators at a commercial mailing store.
Beginning in July, 2010, the indictment alleges that the defendants electronically transferred funds from the Housing Authority’s bank account and into the Keith Daughtry Contracting LLC account. According to the indictment, the conspirators drained the stolen Housing Authority funds from the Keith Daughtry Contracting account by electronic transfers into accounts at other banks, in-person cash withdrawals and from automated teller machines. In addition, the conspirators electronically transferred funds from the Keith Daughtry Contracting account onto debit cards in the names of other individuals. For example, the indictment alleges that during the summer of 2010, Brown recruited individuals to open debit cards in their names at a retail store. The conspirators allegedly transferred thousands of dollars in stolen Housing Authority funds from the Keith Daughtry Contracting account onto these debit cards. Brown then directed the recruits to withdraw most of these funds off the debit cards through cash withdrawals at the retail store and provide the funds to her, although she did permit them to keep certain amounts for themselves. Further, the indictment alleges that Gadsden opened a debit account in the name of another individual, using that person’s identity information without their knowledge or permission.
The indictment also alleges that Gadsden attempted to and did tamper with evidence after he was contacted by an FBI special agent by deleting the contents of at least two e-mail accounts, which were provided as the points of contact for certain debit cards Gadsden opened using stolen identity information.
Finally, the indictment seeks forfeiture of $1,399,700, believed to be the proceeds of the scheme.
The defendants face a maximum sentence of 30 years in prison and a $1 million fine for the bank fraud conspiracy. Gadsden also faces a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft, and 20 years in prison for one count each of attempting to tamper with evidence and for evidence tampering. U.S. District Judge William D. Quarles, Jr. has scheduled trial for April 30, 2012.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.

No comments:

Advertiser

NETC LRC News and Information

Advertiser

Technology Headlines

The TSA Blog

FEMA Blog

White House.gov Video Feed

NYSDOT Recent Press Releases

Indian Point Press Releases

Indian Point Nuclear Power Plant EAS Messages

Indian Point Nuclear Power Plant

New York State-Wide RSS

Department of Homeland Security News

Department of Homeland Security Podcasts

Erie County RSS Feed

Erie County Emergency Management

The Weather Channel: Your Local Weather Outlook--Niagara Falls, NY (14304)

FEMA: New York Federal Disaster Declarations

Niagara County RSS Feed

National Weather Service

Albany County RSS Feed

Allegany County RSS Feed

Bronx County RSS Feed

Broome County RSS Feed

Cattaraugus County RSS Feed

Chemung County RSS Feed

Cayuga County RSS Feed

Ontario County RSS Feed

Warren County RSS Feed

City of Toronto News Releases

US Consumer Product Safety Commission - Recent Recalls and Product Safety News

Center for Missing & Exploited Children: NY Missing

Lead Photos - U.S. Dept. of Defense

CBP.gov: Alert - Maritime - Gulf of Mexico Oil Spill

Contract - U.S. Dept. of Defense

Speech - U.S. Dept. of Defense

Transcript - U.S. Dept. of Defense

The Grill Sergeants

FBI Extra

NASA Breaking News

NASA Ames Research Center News and Features

NASACast Video

USGS Earthquake ShakeMaps

City of Toronto news releases, Emergency Medical Services

City of Toronto news releases, Fire Services

Speeches

Advertiser

City of Toronto news releases, Fire Services

Visitor Snapshot

Royalty Free Music.com News

RoyaltyFreeMusic.com Music Reviews

Automobile RSS Feed

Speed and Accuracy Statement

The information you find here is in the form of raw data, usually delivered via RSS feeds. The information is delivered via website in the most rapid manner possible. Usually this is the manner of delivery of information to media. Therefore, this service gets the audience information to the public more rapidly then any media outlet that has to re-write the information for their email club or SMS feeds.

In some cases, cases, from time to time, updates and correctons are offered by the authors of this information, Motioncenter.info is not responisble for the content of RSS feeds, press releases, or any other content. The content of the information presented is the responsiblity of the producer of the content.

There are many reasons for presenting the information as the page does. The public really never has had a view of the raw data before now. Most cases we see news packaged, polished and prioritized. This blog network offers a wide audience a variety of news, some of it is produced by Motioncenter and some by the government or other sources.

Read what you like, ignore what doesn't interest you, but at least Motioncenter doesn;t tell you what the news is, you choose.

Material Connection Disclosure

You should assume that the owner of this website has an affiliate relationship and/or another material connection to the providers of goods and services mentioned on this site and may be compensated when you purchase from a provider. You should always perform due diligence before buying goods or services from anyone via the internet or offline. THIS IS A BLOG. A NON-COMMERCIAL WEBPAGE At no time does commerce transact on this site. If it had then it would require a Secure Sockets Layer certificate and a merchant account. Being a non-commercial site there are some licensing privledges that this site will participate in. Mystuffnow is an online radio station broadcasting twenty four hours daily. This station can be bet described as a hybrid format of adult contemporary, international and ad popular music. In a sense it may, be compared to compared random radio format, but mystuffnow has three dedicated day parts. These day parts include a morning, evening and overnight separate music selection. The morning and afternoon have a selection of classic rock and current hot hits. To make the station more unique a new track, or tracks from the overnight day part have been added to make the station stand out from traditional stations that broadcast locally. The overnight day part is called “After Hours” and mimics the general principals of a quiet storm programming style where as there are fewer commercials and the music is more adult in nature, not just in lyrics but the music is more unique, offering international and slower tracks. This is meant for relaxation or whatever you may be doing in the late night hours. This station is run by computerized traffic software. At any moment a live deejay can broadcast and a morning show or news programming is possible, all playlists are run automatically. One positive of this is the fact that the software ensures that all artists get paid their royalties and this station avoids any fines for digital media issues. Update: Mystuffnow is currently off the air.

No Endorsement Statement

No endorsement is implied nor should it be inferred. No government agency, or organization has endorsed Motioncenter.Info. Motioncenter.info is a media organization with a mission of offering unbiased information as it becomes available, without any form of bias.

Privacy Policy

This is a website run by Group Speeddog Results Marketing, L.L.C... We take our readers privacy very seriously. Promotions through Third Party Merchants While this site is not endorsed or owned by any of the third party merchants appearing on this site, this site may at times receive various types of compensation when a viewer makes a purchase or clicks on a link appearing on this site. This site is not responsible for any claims or warranties associated with any third-party merchant link or website. This site does not directly collect any information regarding its viewers without your prior knowledge and permission; nor does it share their information with third-party vendors or merchants . It is not now, nor ever will be, our practice to sell your information to any third-party under any circumstance. We use third-party advertising companies to serve ads when you visit our website. These companies may use information (not including your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you. Google Advertising Cookie and Privacy Policies What is the DoubleClick DART cookie? The DoubleClick DART cookie is used by Google in the ads served on the websites of its partners, such as websites displaying AdSense ads or participating in Google certified ad networks. When users visit a partner’s website and either view or click on an ad, a cookie may be dropped on that end user’s browser. The data gathered from these cookies will be used to help better serve and manage ads on the publisher’s site(s) and across the web. *Google, as a third party vendor, uses cookies to serve ads on your site. *Google’s use of the DART cookie enables it and its partners to serve ads to your users based on their visit to your sites and/or other sites on the Internet. *Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.